CORPFIN 7022 - Advanced Corporate Finance (M)
North Terrace Campus - Semester 2 - 2017
General Course Information
Course Code CORPFIN 7022 Course Advanced Corporate Finance (M) Coordinating Unit Business School Term Semester 2 Level Postgraduate Coursework Location/s North Terrace Campus Units 3 Contact Up to 4 hours per week Available for Study Abroad and Exchange Y Prerequisites ACCTING 7019, CORPFIN 7005, COMMERCE 7033, ECON 7200 Course Description The objective of the course is to gain an appreciation of the theoretical controversies surrounding corporate finance policies, leading to formulation of financing strategies. Topics: competing capital structure theories including financial distress and agency costs, dividend policy and taxation, IPOs in both debt and equity markets, motives for convertibles and warrants, rationales for corporate diversification including internal capital markets and agency theory.
Course Coordinator: Associate Professor Jean Canil
The full timetable of all activities for this course can be accessed from Course Planner.See Learning Activities Summary
Course Learning OutcomesOn successful completion of this course, students will be able to:
1. Critically evaluate theoretical research in corporate finance
2. Explain the implications of theory for practical financial management
3. Compare various models of investment decision making under uncertainty
4. Investigate the impact of alternative financing proposals that a firm may face in both the short and long term and argue recommendations
University Graduate Attributes
This course will provide students with an opportunity to develop the Graduate Attribute(s) specified below:
University Graduate Attribute Course Learning Outcome(s) Deep discipline knowledge
- informed and infused by cutting edge research, scaffolded throughout their program of studies
- acquired from personal interaction with research active educators, from year 1
- accredited or validated against national or international standards (for relevant programs)
1 through 4 Critical thinking and problem solving
- steeped in research methods and rigor
- based on empirical evidence and the scientific approach to knowledge development
- demonstrated through appropriate and relevant assessment
1 through 4 Teamwork and communication skills
- developed from, with, and via the SGDE
- honed through assessment and practice throughout the program of studies
- encouraged and valued in all aspects of learning
1 through 4 Career and leadership readiness
- technology savvy
- professional and, where relevant, fully accredited
- forward thinking and well informed
- tested and validated by work based experiences
1 through 4 Intercultural and ethical competency
- adept at operating in other cultures
- comfortable with different nationalities and social contexts
- able to determine and contribute to desirable social outcomes
- demonstrated by study abroad or with an understanding of indigenous knowledges
1 through 4 Self-awareness and emotional intelligence
- a capacity for self-reflection and a willingness to engage in self-appraisal
- open to objective and constructive feedback from supervisors and peers
- able to negotiate difficult social situations, defuse conflict and engage positively in purposeful debate
1 through 4
Required ResourcesThe textbook for the course is Allen, F., R. A. Brealey, and S. C. Myers, Principles of Corporate Finance 12th edition McGraw Hill, 2017. (ABM). You must acquire the 12th edition as there is material covered that is not contained in the 11th edition.
Online LearningOnline resources provided on MyUni.
Learning & Teaching Activities
Learning & Teaching ModesLectures supported by problem-solving tutorials developing material covered in lectures.
The information below is provided as a guide to assist students in engaging appropriately with the course requirements.The University expects full-time students (i.e. those taking 12 units per semester) to devote a total of 48 hours per week to their studies. This means that you are expected to commit approximately 9 hours for a three-unit course or 13 hours for a four-unit course, of private study outside of your regular classes. Students in this course are expected to attend all lectures throughout the semester plus one tutorial class each week.
Learning Activities Summary
Week: Topic Readings: 1 Does debt policy matter? Ch.17 + Titman.pdf 2 How much should a firm borrow? Ch.18 pp.460-479 3 The pecking order and Stulz (1990) Ch.18 pp.479-486 + Lakshmi.pdf; Frank.pdf + additional reading 4 Leases Ch.25 + distributed readings 5 Convertibles Ch. 24 pp 630-636 + Mayer.pdf Class test starting at 1.10pm and to be held in the lecture theatre. More information will be provided closer to the date 6 Payout policy Ch.16 + LaPorta.pdf & Brandon.pdf 7 Equity and debt issues including IPOs Ch.15 (exclude p. 398 dealing with rights issues) + Loughran and Ritter.pdf Mid-semester break Class test starting at 1.10pm and to be held in the lecture theatre More information will be provided closer to the date 8 Executive compensation Ch.12 pp 302-311 + Core et al.pdf 9 Internal capital markets Gertner.pdf + Stein.pdf + additional reading Review Lecture and Tutorials for Topic 9
The University's policy on Assessment for Coursework Programs is based on the following four principles:
- Assessment must encourage and reinforce learning.
- Assessment must enable robust and fair judgements about student performance.
- Assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned.
- Assessment must maintain academic standards.
Assessment Task Weighting Learning Outcome Class Test 1: 50 minutes 10% All Class Test 2: 50 minutes 10% All Assignment 15% All Final Exam: 3 hours, Closed-book 65% All Total 100%
Assessment DetailDetailed information will be provided during the course.
SubmissionPresentation of Assignments ·
Please must retain a copy of all assignments submitted. · Please attach an ‘Assignment Cover Sheet’, which is signed and dated by you before submission. · All group assignments must be attached to a ‘Group Assignment Cover Sheet’, which must be signed and dated by all group members before submission. All team members are expected to contribute approximately equally to a group assignment. Lecturers can refuse to accept assignments, which do not have a signed acknowledgement of the University’s policy on plagiarism.
Assignment Guidelines including Referencing Details
A copy of the Postgraduate Programs Communication Skills Guide will have been given to you at the beginning of your program. This guide will assist you structure your assignments. This publication also provides guidelines on a range of other important communication skills including writing essays and management reports, making oral presentations etc. In preparing any written piece of assessment for your postgraduate studies it is important to draw on the relevant ‘literature’ to support critical analysis. Also essential is to reference the literature used. Correct referencing is important because it identifies the source of the ideas and arguments that you present, and sometimes the source of the actual words you use, and helps to avoid the problem of plagiarism. (Further information on plagiarism is provided later in this course outline.) The Harvard system is widely used in the Business School. Guidelines for the use of this style of referencing can be found in the Communication Skills Guide. Further assistance with referencing is available from the Faculty’s Learning Support Advisors. The contact details are provided on page 6 of the Communication Skills Guide.
Late Assignment Submission
Students are expected to submit their work by the due date to maintain a fair and equitable system. Extensions will generally only be given for medical or other serious reasons. All requests for extensions must be emailed to the lecturer in charge of the course before the due date. Each request will be assessed on its merits. A late assignment (without prior arrangement) will be penalised by a 5% mark reduction for each day that it is late.
Return of Assignments
Lecturer’s aim to mark and return assignments to students within two (2) weeks of the due date with written feedback. Students are responsible for collecting their marked assignments from the Hub.
Grades for your performance in this course will be awarded in accordance with the following scheme:
M10 (Coursework Mark Scheme) Grade Mark Description FNS Fail No Submission F 1-49 Fail P 50-64 Pass C 65-74 Credit D 75-84 Distinction HD 85-100 High Distinction CN Continuing NFE No Formal Examination RP Result Pending
Further details of the grades/results can be obtained from Examinations.
Grade Descriptors are available which provide a general guide to the standard of work that is expected at each grade level. More information at Assessment for Coursework Programs.
Final results for this course will be made available through Access Adelaide.
The University places a high priority on approaches to learning and teaching that enhance the student experience. Feedback is sought from students in a variety of ways including on-going engagement with staff, the use of online discussion boards and the use of Student Experience of Learning and Teaching (SELT) surveys as well as GOS surveys and Program reviews.
SELTs are an important source of information to inform individual teaching practice, decisions about teaching duties, and course and program curriculum design. They enable the University to assess how effectively its learning environments and teaching practices facilitate student engagement and learning outcomes. Under the current SELT Policy (http://www.adelaide.edu.au/policies/101/) course SELTs are mandated and must be conducted at the conclusion of each term/semester/trimester for every course offering. Feedback on issues raised through course SELT surveys is made available to enrolled students through various resources (e.g. MyUni). In addition aggregated course SELT data is available.
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